The Financialization of Nature; Or, Neoliberal Environmentalism at Work

The financialization of nature is the process of replacing environmental regulation with markets. In order to bring nature under the control of markets, the planet’s natural resources need to be made into commodities that can be bought and sold for a profit. It is a means of transferring the stewardship of our common resources to private business interests.
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Since the economic slowdown of the early 1970s, the financial sector has played an increasingly large role in our economy. The finance sector’s share of domestic corporate profits rose from below 16 percent in the 1970s and 1980s to as high as 41 percent in the decade before the 2008 financial crisis. In the wake of the financial crisis, after seeing its profits plummet, the sector is back to accounting for about 33 percent of domestic corporate profits.

As the finance sector grew in size, it also grew in strength. Policies in Washington came to reflect the interests of financial actors. The 1980s saw a push for deregulation. The Reagan administration pursued deregulation of industries ranging from energy companies to banking. The move for deregulation became broadly bipartisan in the 1990s and culminated in the passage of the Gramm-Leach-Bliley Act of 1999, which removed regulations put in place during the Great Depression to protect banks from the hazards of speculation.

At the same time, so-called market-based approaches to regulation became popular among policymakers. In the place of regulatory structures that prohibited certain activities, policymakers began to favor providing economic incentives for promoting or discouraging certain behaviors. Perhaps the most prominent example of this is the push for cap-and-trade schemes. Touted as a market-based solution to disincentivize pollution, it actually sells the right to pollute, given that a company can front the cost to do so.

Cap and trade is a radical shift in how environmental regulation works. Traditional environmental regulation relies on permission, prohibition, standard setting and enforcement to meet environmental ends. Regulated sectors need to meet the standard set or face penalties. Most classic U.S. regulation, including the Clean Air Act, first enacted in 1970, and the Clean Water Act, first enacted in 1972, fits that mold.

In contrast, cap and trade attempts to create markets in actual or potential pollution to create an economic incentive to pollute less. Many, but not all, systems also include a cap, a system-wide limit to the amount of pollution that can be emitted. Instead of limiting what an individual plant may emit, each polluter is given an allocation of emissions. If it doesn’t use up that allocation in a year, it may sell those emission allowances to another company that polluted more than its allocation.

Those who oppose simply regulating pollution commonly propose cap and trade as a more “free market” approach to environmental problems. The market is used to allocate costs, rather than using the performance-based indicator of meeting a regulated standard. Proposals for cap and trade systems range from using them to limit greenhouse gases to using them to control water pollution.

What all of these cap-and-trade systems have in common is the creation of a new commodity – the right to pollute – that is then sold in a new market. The credits or allowances for the amount of pollution emitted become the private property of the polluter. Financial actors can then build speculative markets that bet on the future price fluctuations in those credits. Because pollution under the cap-and-trade system is supposed to be controlled by the price of the credits, in so far as the financial markets determine that price, regulation of pollution is transferred to those markets.

The financialization of nature is not about protecting the environment; it is about creating ways for the financial sector to continue to earn high profits. Although the sector has begun to rebound from the financial crisis, it is still below its pre-crisis levels of profit. By pushing into new areas, promoting the creation of new commodities, and exploiting the real threat of climate change for their own ends, financial companies and actors are placing the whole world at risk.

Mitch Jones works on environmental and international trade issues.

 

Data Security for DSA Members

June 27, 2017

Ack! I googled myself and didn't like what I found!

WHAT: A DSA Webinar about "Doxing"
WHEN: 9PM EST, 6PM PST

We're proud of our organizing, and chapter work is transparent for both political and practical reasons. However, there are basic precautions you can take in this time of rapid DSA growth to protect your privacy.

Key Wiki is a website that meticulously documents DSA activity and posts it for the world to see. If you're an active DSA member, likely your name is on their website. This is an example of "doxing".

As DSA becomes larger, more visible, and more powerful, we might expect that more websites like this will pop up, and more of our members' information might be posted publicly on the web.

Join a live webinar on Tuesday, June 27 with data security expert Alison Macrina, to learn:

  1. what is doxing? with examples and ways to prevent it
  2. how to keep your passwords strong and your data secure
  3. where to find your personal info on the internet and how to get it removed
  4. social media best practices for DSA organizers
  5. what to do if you've already been doxed

Zoom Link: https://zoom.us/j/9173276528

Call-in Info: +1 408 638 0968
Meeting ID: 917 327 6528

Introduction to Socialist Feminism Call

June 27, 2017
· 77 rsvps

Join DSA activist Judith Gardiner to explore “socialist feminism.” How does it differ from other forms of feminism? How and when did it develop? What does it mean for our activism? 9 pm ET, 8 pm CT, 7 pm MT, 6 pm PT.

Introduction to Democratic Socialism

July 06, 2017
· 17 rsvps

Join Rahel Biru, NYC DSA co-chair, and Joseph Schwartz, DSA Vice-Chair, on this webinar for an overview of what we in Democratic Socialists of America mean when we talk about "socialism," "capitalism" and the goals of the socialist movement.  8 PM ET; 7 PM CT; 6 PM MT; 5 PM PT.

  1. This webinar is free for any DSA member in good standing.
  2. You need a computer with good internet access.
  3. Your computer must have headphones (preferred) or speakers; you can speak thru a mic or use chat to "speak".
  4. If you have questions, contact Joseph Schwartz, schwartzjoem@gmail.com.
  5. If you have technical questions, contact Tony Schmitt, schmittaj@gmail.com, 608-355-6568.

DSA New Member Orientation Call

July 09, 2017
· 2 rsvps

You've joined DSA - Great. Now register for this New Member Orientation call and find out more about our politics and our vision.  And, most importantly, how you can become involved.  9 PM ET; 8 PM CT; 7 PM MT; 6 PM PT.

Running for the National Political Committee

July 11, 2017
· 4 rsvps

Join this call to hear a presentation and ask questions about the role, duties and time commitment of a member of DSA's National Political Committee. In the meantime, check out the information already on our website about the NPC.

Film Discussion: Pride

September 10, 2017
· 12 rsvps

Join DSA members Eric Brasure and Brendan Hamill to discuss the British film Pride (2014). It’s 1984, British coal miners are on strike, and a group of gays and lesbians in London bring the queer community together to support the miners in their fight. Based on the true story of Lesbians and Gays Support the Miners. The film is available for rent on YouTube, Amazon, and iTunes. 8 ET/7 CT/6 MT/5 PT.

Film Discussion: Union Maids

September 24, 2017
· 11 rsvps

 

Join DSA member and labor historian Susan Hirsch in discussing Union Maids (1976). Nominated for an Academy Award, this documentary follows three Chicago labor organizers (Kate Hyndman, Stella Nowicki, and Sylvia Woods) active beginning in the 1930s. The filmmakers were members of the New American Movement (a precursor of DSA), and the late Vicki Starr (aka Stella Nowicki) was a longtime member of Chicago DSA and the Chicago Women's Liberation Union. It’s available free on YouTube, though sound quality is poor. 8ET/7CT/6MT/5PT.